What to do if ATM dispenses damaged notes: Read RBI currency exchange rule here

The cut in such notes, should, however, not have passed through the number panels.

All these notes can be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any issue office of RBI.

There is no need to fill any form for doing this, according to the central bank.

In this case, where the number of notes presented by a person is up to 20 pieces with a maximum value of Rs 5,000 per day, banks should exchange them over the counter, free of charge.

When number of notes presented by a person exceeds 20 pieces or Rs 5,000 in value per day, banks may accept them, against receipt, for value to be credited later. Banks may levy service charges too. In case tendered value is above Rs 50,000, banks are expected to take the usual precautions.

A mutilated note is a note of which a portion is missing or which is composed of more than two pieces. Essential portions in a currency note are name of issuing authority, guarantee, promise clause, signature, Ashoka Pillar emblem/portrait of Mahatma Gandhi, water mark.

Refund value of these notes is, however, paid as per RBI(Note Refund) Rules.

These can also be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any issue office of the RBI without filling any form.

Where the number of notes presented by a person is up to 5 pieces, non-chest branches should normally adjudicate the notes and pay the exchange value over the counter.

Where the number of notes presented by a person is more than 5 pieces not exceeding Rs 5,000 in value, the tenderer should be advised to send such notes to nearby currency chest branch by insured post giving his/her bank account details (a/c no, branch name, IFSC, etc.) or get them exchanged thereat in person.

Notes which have turned extremely brittle or are badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, will not be accepted by the bank branches for exchange, RBI said.

Instead, the holders may be advised to tender these notes to the issue office concerned where they will be adjudicated under a special procedure.

To suit public convenience, the exchange facility for mutilated notes is also offered through Triple Lock Receptacle (TLR) covers, RBI said.

Members of public can obtain a TLR cover from the enquiry counter and put their notes in the cover with particulars, such as, name, address, denominations of notes deposited, etc .

The box is kept at the enquiry counter at each issue office of RBI. The admissible exchange value of the mutilated notes will be remitted by means of a bank draft or a pay order. Mutilated notes can also be sent to any of the RBI offices by registered/insured post.